Hershey's Faces Controversy Over Reese's Recipe Changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy HSY?
Source: seekingalpha
- Recipe Controversy: Hershey's is embroiled in controversy as Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, claims the company has quietly degraded the candy's core recipe, replacing real milk chocolate with cheaper coatings, which could harm brand reputation.
- Consumer Misleading: Brad Reese questions how Hershey can maintain trust in the Reese's brand while allegedly replacing the essential ingredients of milk chocolate and peanut butter, suggesting this could mislead consumers and potentially erode brand loyalty.
- Company Response: Hershey's has denied making drastic changes to the recipe, asserting that any adjustments are related to expanding product lines into new shapes and sizes, aiming to protect its brand image amidst the controversy.
- Stock Fluctuation: Following the controversy, Hershey's (HSY) shares fell 0.5% in premarket trading on Wednesday after a 0.8% decline on Tuesday, indicating that concerns over brand trust may be affecting investor confidence.
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Analyst Views on HSY
Wall Street analysts forecast HSY stock price to fall
17 Analyst Rating
3 Buy
14 Hold
0 Sell
Hold
Current: 219.400
Low
181.00
Averages
196.27
High
222.00
Current: 219.400
Low
181.00
Averages
196.27
High
222.00
About HSY
The Hershey Company is a snacks company. The Company's segments include North America Confectionery, North America Salty Snacks and International. The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes its business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes its retail operations. The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat free snacks, pretzels and other snacks. The Company's portfolio includes chocolate and confectionery brands such as Hershey's, Reese's, Kisses, Kit Kat, Jolly Rancher, Ice Breakers, LesserEvil, Shaq-a-licious alongside salty snacks, including SkinnyPop and Dot's Homestyle Pretzels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Hershey's Sales Growth Surprises: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding analysts' expectations of 2.69%, while the CEO is pushing for innovation in healthier, zero-sugar products, which is likely to enhance market share and brand competitiveness.
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- Hershey's Strong Guidance: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding the 2.69% forecasted by analysts, as CEO Kirk Tanner focuses on healthier, zero-sugar products, with gross margins expected to improve starting Q2 2026, showcasing strong recovery potential.
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- Hershey Controversy Impact: Hershey’s stock slipped 0.4% amid controversy surrounding its Reese’s Peanut Butter Cup brand, as the inventor's grandson accused the company of quietly altering the core recipe and misleading consumers, potentially harming brand reputation and sales.
See More
Hershey's Faces Controversy Over Reese's Recipe Changes
- Recipe Controversy: Hershey's is embroiled in controversy as Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, claims the company has quietly degraded the candy's core recipe, replacing real milk chocolate with cheaper coatings, which could harm brand reputation.
- Consumer Misleading: Brad Reese questions how Hershey can maintain trust in the Reese's brand while allegedly replacing the essential ingredients of milk chocolate and peanut butter, suggesting this could mislead consumers and potentially erode brand loyalty.
- Company Response: Hershey's has denied making drastic changes to the recipe, asserting that any adjustments are related to expanding product lines into new shapes and sizes, aiming to protect its brand image amidst the controversy.
- Stock Fluctuation: Following the controversy, Hershey's (HSY) shares fell 0.5% in premarket trading on Wednesday after a 0.8% decline on Tuesday, indicating that concerns over brand trust may be affecting investor confidence.
See More
MrBeast Enters Debate Over Hershey's Ingredient Changes
- Ingredient Controversy: Brad Reese, heir to the Reese's brand, criticized Hershey for allegedly altering key ingredients in their products, claiming some now contain 'peanut-butter-style crèmes' instead of traditional milk chocolate and real peanut butter, raising concerns about brand integrity.
- MrBeast's Response: YouTube star MrBeast shared Brad Reese's comments on social media, using the moment to promote his chocolate brand, Feastables, which he claims uses real peanut butter, positioning it as a competitor to legacy brands like Hershey.
- Ethics vs. Profit Debate: When questioned about his motives, MrBeast defended his brand by stating that making chocolate isn't the easiest way to achieve high margins, emphasizing Feastables' commitment to ethical sourcing, including fair trade practices and audits for child labor risks.
- Market Reaction: Hershey's shares fell by 1.63% on Friday, although the stock maintains a strong momentum rating in Benzinga's rankings, indicating a positive price trend across short, medium, and long-term periods.
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- High Demand Call Options: Notably, the $60 strike call option expiring on March 20, 2026, has seen 3,340 contracts traded today, representing about 334,000 underlying shares, suggesting investor expectations for future price increases.
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- Significant Call Option Trading: The $185 strike call option expiring on February 20, 2026, has seen a trading volume of 4,665 contracts today, representing around 466,500 underlying shares, indicating optimistic sentiment among investors regarding Hershey's future performance.
See More
Three Consumer Stocks with Strong Upside Potential
- Lululemon's International Strength: Lululemon Athletica's international revenue surged 33% year-over-year, with China alone growing 46%, indicating that despite a 3% decline in the U.S. market, international operations are becoming the main revenue driver, expected to boost overall performance moving forward.
- Hershey's Sales Growth Surprises: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding analysts' expectations of 2.69%, while the CEO is pushing for innovation in healthier, zero-sugar products, which is likely to enhance market share and brand competitiveness.
- Nike's Attractive Valuation: Currently trading at a P/E of 20, Nike is well below its historical average of 31, and despite weak performance in Greater China, North America saw a 9% sales increase, with the upcoming 2026 FIFA World Cup expected to drive demand and profit growth.
- Market Rebound Potential: All three companies possess strong brand influence and market share in their respective sectors, and their current stock prices appear undervalued, presenting investors with an opportunity to capitalize on future rebounds through diversified investments.
See More
International Markets Propel Lululemon and Nike's Recovery
- Lululemon's International Growth: Lululemon's international revenue surged 33% year-over-year in Q3, with China alone up 46%, indicating that while U.S. revenue fell 3%, the international segment is becoming the main revenue driver, expected to boost future performance.
- Hershey's Strong Guidance: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding the 2.69% forecasted by analysts, as CEO Kirk Tanner focuses on healthier, zero-sugar products, with gross margins expected to improve starting Q2 2026, showcasing strong recovery potential.
- Nike's Attractive Valuation: Trading at a P/E of 20, Nike is undervalued compared to its historical average of 31, with a 9% sales increase in North America despite a 520 basis point tariff headwind, indicating early success of its
See More
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- Analog Devices Earnings Beat: Analog Devices' stock increased by 6.6% after fiscal Q1 results and outlook surpassed expectations, with projected Q2 2026 revenue of $3.5 billion significantly above the consensus of $3.23 billion, showcasing robust market demand and profitability.
- Fiverr International Struggles: Fiverr International's stock dropped 19% after mixed Q4 results, with revenue rising 3.4% year-over-year to $107.2 million, but marketplace revenue declining 2.7% and active buyers falling 13.6% to 3.1 million, reflecting significant market challenges.
- Hershey Controversy Impact: Hershey’s stock slipped 0.4% amid controversy surrounding its Reese’s Peanut Butter Cup brand, as the inventor's grandson accused the company of quietly altering the core recipe and misleading consumers, potentially harming brand reputation and sales.
See More
Hershey's Faces Controversy Over Reese's Recipe Changes
- Recipe Controversy: Hershey's is embroiled in controversy as Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, claims the company has quietly degraded the candy's core recipe, replacing real milk chocolate with cheaper coatings, which could harm brand reputation.
- Consumer Misleading: Brad Reese questions how Hershey can maintain trust in the Reese's brand while allegedly replacing the essential ingredients of milk chocolate and peanut butter, suggesting this could mislead consumers and potentially erode brand loyalty.
- Company Response: Hershey's has denied making drastic changes to the recipe, asserting that any adjustments are related to expanding product lines into new shapes and sizes, aiming to protect its brand image amidst the controversy.
- Stock Fluctuation: Following the controversy, Hershey's (HSY) shares fell 0.5% in premarket trading on Wednesday after a 0.8% decline on Tuesday, indicating that concerns over brand trust may be affecting investor confidence.
See More
MrBeast Enters Debate Over Hershey's Ingredient Changes
- Ingredient Controversy: Brad Reese, heir to the Reese's brand, criticized Hershey for allegedly altering key ingredients in their products, claiming some now contain 'peanut-butter-style crèmes' instead of traditional milk chocolate and real peanut butter, raising concerns about brand integrity.
- MrBeast's Response: YouTube star MrBeast shared Brad Reese's comments on social media, using the moment to promote his chocolate brand, Feastables, which he claims uses real peanut butter, positioning it as a competitor to legacy brands like Hershey.
- Ethics vs. Profit Debate: When questioned about his motives, MrBeast defended his brand by stating that making chocolate isn't the easiest way to achieve high margins, emphasizing Feastables' commitment to ethical sourcing, including fair trade practices and audits for child labor risks.
- Market Reaction: Hershey's shares fell by 1.63% on Friday, although the stock maintains a strong momentum rating in Benzinga's rankings, indicating a positive price trend across short, medium, and long-term periods.
See More
Dutch Bros and Hershey Options Trading Activity Surges
- Dutch Bros Options Volume: Dutch Bros Inc saw options trading volume of 36,024 contracts, equivalent to approximately 3.6 million shares, representing 60.4% of its average daily trading volume over the past month, indicating strong market interest in the stock.
- High Demand Call Options: Notably, the $60 strike call option expiring on March 20, 2026, has seen 3,340 contracts traded today, representing about 334,000 underlying shares, suggesting investor expectations for future price increases.
- Hershey Options Activity: Hershey Company recorded an options trading volume of 14,351 contracts, approximately 1.4 million shares, accounting for 58.6% of its average daily trading volume over the past month, reflecting ongoing market interest in the company.
- Significant Call Option Trading: The $185 strike call option expiring on February 20, 2026, has seen a trading volume of 4,665 contracts today, representing around 466,500 underlying shares, indicating optimistic sentiment among investors regarding Hershey's future performance.
See More
